EPA grows E15

The EPA widened a crack in the so-called blend wall
Friday, announcing that it has approved the use of gasoline blends of 15%
ethanol for use in light passenger vehicles made for the 2001 model year or
later.The decision is based on
testing by the Department of Energy that showed no ill effects on newer
engines.

“Recently completed testing and data analysis show that
E15 does not harm emissions control equipment in newer cars and light
trucks," said EPA Administrator Lisa P. Jackson. "Wherever sound
science and the law support steps to allow more home-grown fuels in America’s
vehicles, this administration takes those steps." ?

The announcement was welcomed by commodity and farm
groups and lobbyists for the ethanol industry.

The EPA announcement opens up the market for E15 for
about 55% to 60% of cars and pickup trucks currently on the road, said leaders
of Growth Energy, the ethanol trade group that asked EPA in 2009 for a waiver
to the Clean Air Act to allow a blend above the current 10% limit for all cars.

“It’s a huge step forward for our national security,”
said retired General Wesley Clark, co-chair of Growth Energy. The decision will
allow the use of another 7 billion gallons a year of ethanol, he said. The EPA
is mandating the use of almost 14 billion gallons of ethanol this year through
the renewable fuel standard.

Tom Buis, Growth Energy CEO, said his group would like to
see E15 allowed in all cars but acknowledged that he’s not aware of testing by
DOE on older vehicles.

“We are not going to give up until we completely tear
down that blend wall,” Buis said.

Buis wasn’t able to say exactly when E15 will be widely
available to motorists, but he said he thought it would be sooner than the
three-to-five year timeline of some analysts.

EPA still has to issue final rules on how pumps for E15
should be labeled to warn owners of older vehicles against using it. The new
fuel blend will also have to be registered with EPA, he said, and some state
legislatures will have to approve blends above 10% as well.

Already, some independent retailers in the Midwest are
planning to make the shift as soon as they’re allowed.

“We’re planning to put E15 in eight of our 20-strong
chain as soon as the labels have been approved,” said Kent Satrang, CEO and
General Manager of Petro Serve USA, based in Fargo, North Dakota. Satrang plans
to sell E15 at his eight gas stations that have blender pumps, which allow
consumers to buy different levels of ethanol blends.